Downpayment Assistance Program:
Discovering the Benefits of The Chenoa Fund

What is the Chenoa Fund Down Payment Assistance Program?

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The Chenoa Fund Down Payment Assistance Program is a program offered by CBC Mortgage Agency, a federally chartered housing finance agency. This program provides eligible homebuyers with a second mortgage loan that can be used to cover their down payment and closing costs.
 

The Chenoa Fund offers two different types of second mortgage loans: a repayable loan and a non-repayable grant. The repayable loan is a second mortgage that must be paid back over a set term, typically 10 or 30 years, depending on the program. The non-repayable grant is a second mortgage that does not have to be paid back as long as the borrower stays in the home for a certain period, typically three to five years, depending on the program.

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Who is Eligible for the Chenoa Fund Down Payment Assistance Program?

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To be eligible for the Chenoa Fund Down Payment Assistance Program, homebuyers must meet certain criteria. Here are some of the key eligibility requirements:

• Homebuyers must meet the income requirements for the program. Income limits vary depending on the program and the location of the property.

• Homebuyers must have a credit score of at least 600.

• Homebuyers must complete a homebuyer education course before closing on the loan.

• The home being purchased must be the borrower's primary residence.

• Homebuyers must meet the debt-to-income (DTI) ratio requirements for the program.

 

How Does the Chenoa Fund Down Payment Assistance Program Work?

 

The Chenoa Fund Down Payment Assistance Program works in conjunction with a first mortgage loan. The first mortgage loan is typically a conventional loan, FHA loan, or VA loan. The second mortgage loan from the Chenoa Fund can be used to cover the down payment and closing costs for the homebuyer.

For the repayable loan option, homebuyers will make monthly payments on the second mortgage loan for the term of the loan. For the non-repayable grant option, homebuyers do not have to make any payments on the second mortgage loan as long as they remain in the home for the required period.

 

Benefits of the Chenoa Fund Down Payment Assistance Program

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The Chenoa Fund Down Payment Assistance Program offers several benefits to eligible homebuyers, including:

• Help overcoming financial barriers: The Chenoa Fund can help eligible homebuyers overcome the financial barrier of a down payment and closing costs, making it easier for them to buy a home.

• Expand homeownership opportunities: By providing financial assistance to eligible homebuyers, the Chenoa Fund can expand homeownership opportunities to those who may not have been able to afford to buy a home otherwise.

• Lower monthly mortgage payments: By increasing the down payment, homebuyers may be able to lower their monthly mortgage payments, making homeownership more affordable.

• Build wealth over time: Homeownership is one of the most significant ways to build wealth over time. By using the Chenoa Fund to buy a home, homebuyers can start building equity in their home right away.